Spoilage Charged to

All Production (Mfg.

Particular (Job 1234) Overhead)
Total Cost of 2,200 coats 125,400.00 125,400.00
Less: Scrap Value of Job 1234 6,000.00
All Production Cost of Job 234 (P56*200) 11,400.00
Cost of Good Units 119,400.00 114,000.00
Divided by: Good Units 2,000 2,000
Cost of Good Units 59.70 57.00

or simply the unadjusted unit cost of Job 1234 which is:

Direct Material 20.00
Direct Labor 18.00
Factory Overhead 19.00
Cost of Good Units 57.00
 Rework Charged to
Particular (Job 567) All Production (Mfg.
Overhead)
Total Cost of 200 motors 2,660.00 2,660.00
Add: Rework Cost
Direct Materials 100.00 -
Direct Labor 150.00 -
Applied Factory Overhead (150% of DL Cost) 225.00 -
Cost of Good Units 3,135.00 2,660.00
Divided by: No. of Motors 200 200
Cost of Good Units 15.68 13.30

or simply
Unadjusted Unit Cost (2,660/200) 13.30
Add: Rework Cost alllocated to all units in the job
(DM 100 + DL 150 + OH 225)/200 2.38
Cost of Good Units 15.68
For Items 3 and 4
Plantwide Overhead Rate = Total Overhead Cost/Total Acivity of Allocation Basis
Plantwide Overhead Rate = P1,500,000/50,000 MH
Plantwide Overhead Rate = P30/MH

Product X Product Y
Direct Material 100,000.00 310,000.00
Direct Labor 50,000.00 350,000.00
Overhead
P30 x 3,000 90,000.00
P30 x 47,000 1,410,000.00
Total Cost 240,000.00 2,070,000.00
Divided by: Units Produced 500.00 15,500.00
Cost per unit 480.00 133.55
Item 3 Item 4

For Items 5 and 6

Overhead Rates Activity Levels

Application Rate
per activity (Total
Total Cost Product X Product Y
Cost/Activity
Level)

Direct Material
Direct Labor
Overhead:
Setup-related 250,000.00 1,250.00 120 80
Design-related 350,000.00 35.00 6,000 4,000
Other overhead 900,000.00 18.00 3,000 47,000
Total Cost 1,500,000.00
Divided by: Units Produced
Cost per unit
 Costing

Product X Product Y

100,000.00 310,000.00
50,000.00 350,000.00

150,000.00 100,000.00
210,000.00 140,000.00
54,000.00 846,000.00
564,000.00 1,746,000.00
500.00 15,500.00
1,128.00 112.65
Item 5 Item 6
 Job No Direct Material Direct Labor Cost Applied Total Cost
Overhead
67 35,406.00 13,840.00 15,916.00 65,162.00
69 109,872.00 14,480.00 16,652.00 141,004.00
70 2,436.00 4,000.00 4,600.00 11,036.00
71 308,430.00 57,000.00 ? ?
72 57,690.00 4,400.00 5,060.00 67,150.00

For Item 7
Predetermined Overhead Based on Direct Labor Cost

Application Rate
Applied (Applied
Job No Direct Labor Cost
Overhead Overhead/Direct
labor Cost)

67 13,840.00 15,916.00 115.00%

69 14,480.00 16,652.00 115.00%
70 4,000.00 4,600.00 115.00%
71 57,000.00
72 4,400.00 5,060.00 115.00%
115.00%

For Item 8
Applied
Job No Direct Material Direct Labor Cost Overhead (DL Total Cost
Cost*115%)
67 25,800.00 7,200.00 8,280.00 41,280.00

For Item 9 and 10

Beginning Inventory
Applied
Job No Direct Material Direct Labor Cost Overhead (DL Total Cost
Cost*115%)
67 25,800.00 7,200.00 8,280.00 41,280.00

Charged to production for the current period

Applied
Job No Direct Material Direct Labor Cost Overhead (DL Total Cost
Cost*115%)
67 9,606.00 6,640.00 7,636.00 23,882.00
69 109,872.00 14,480.00 16,652.00 141,004.00
70 2,436.00 4,000.00 4,600.00 11,036.00
71 308,430.00 57,000.00 65,550.00 430,980.00
72 57,690.00 4,400.00 5,060.00 67,150.00
 488,034.00 86,520.00 99,498.00 674,052.00

Direct Cost added to May = DM + DL

Direct Cost added to May = 488,034 + 86,520
Direct Cost added to May 574,554.00 Item 9

Ending Inventory
Applied
Job No Direct Material Direct Labor Cost Overhead (DL Total Cost
Cost*115%)
71 308,430.00 57,000.00 65,550.00 430,980.00

Work in Process inventory CONTROL ACCOUNT

Beginning 41,280.00 COGM (squeeze) 284,352.00 Item 10
Direct Materials 488,034.00
Direct Labor 86,520.00
Applied OH 99,498.00
Ending 430,980.00
Ace Tool Company
Cost of Production Report - Assembly Department
For the production period November 20XX

Equivalent Units o

Quantity Schedule Physical Units Transferred-in

(a) Quantity to be accounted for
Beginning WIP inventory 1,000
Units started 3,000
Units to account for 4,000

(b) Quantity accounted for

Beginning WIP inventory already completed 1,000 -
Started during the period and completed 1,800 1,800
Total units Transferred out to Finished Goods 2,800
Ending WIP inventory 1,200 1,200
Units accounted for 4,000 3,000

Cost

Cost Schedule Total Transferred-in

(c) Cost to be accounted for
Beginning WIP inventory 397,000.00 236,000.00
Current cost for the period 689,130.00 292,500.00
Cost to be accounted for 1,086,130.00
Divided by: EUP (current cost) 3,000
Current Cost per EUP (if not rounded) 97.5

(d) Cost accounted for

Transferred out
Beginning WIP Inventory 397,000.00 236,000.00
Cost to complete 25,841.29 -
Completed Beginning WIP Inventory 422,841.29
Started and completed 458,649.31 175,500.00
Total Cost of Transferred Out 881,490.59
Ending Inventory 204,639.41 117,000.00
Total cost accounted for 1,086,130.00

Unit Cost of Units Transferred-out to Finished Goods

Unit Cost of Transferred Out from Beginning Inventory
Unit Cost of Transferred Out from Started and Completed during the period
 Equivalent Units of Production

Materials Labor Overhead

100 200 200

1,800 1,800 1,800

480 600 600

2,380 2,600 2,600

Cost

Materials Labor Overhead

77,000.00 35,000.00 49,000.00

133,750.00 96,720.00 166,160.00

2,380 2,600 2,600

56.197478992 37.2 63.907692308

77,000.00 35,000.00 49,000.00

5,619.75 7,440.00 12,781.54

101,155.46 66,960.00 115,033.85

26,974.79 22,320.00 38,344.62

314.81806954
422.84
ng the period 254.81
Ace Tool Company
Cost of Production Report - Assembly Department
For the production period November 20XX

Equivalent Units o

Quantity Schedule Physical Units Transferred-in

(a) Quantity to be accounted for
Beginning WIP inventory 1,000
Units started 3,000
Units to account for 4,000

(b) Quantity accounted for

Beginning WIP inventory already completed 1,000 -
Started during the period and completed 1,800 1,800
Total units Transferred out to Finished Goods 2,800
Ending WIP inventory 1,200 1,200
Units accounted for 4,000 3,000

Cost

Cost Schedule Total Transferred-in

(c) Cost to be accounted for
Beginning WIP inventory 397,000.00 236,000.00
Current cost for the period 689,130.00 292,500.00
Cost to be accounted for 1,086,130.00
Divided by: EUP (current cost) 3,000
Current Cost per EUP (if rounded to 5 Decimal Places) 97.50000

(d) Cost accounted for

Transferred out
Beginning WIP Inventory 397,000.00 236,000.00
Cost to complete 25,841.29 -
Completed Beginning WIP Inventory 422,841.29
Started and completed 458,649.31 175,500.00
Total Cost of Transferred Out 881,490.59
Ending Inventory 204,639.40 117,000.00
Total cost accounted for 1,086,130.00

Unit Cost of Units Transferred-out to Finished Goods

Unit Cost of Transferred Out from Beginning Inventory
Unit Cost of Transferred Out from Started and Completed during the period
 Equivalent Units of Production

Materials Labor Overhead

100 200 200

1,800 1,800 1,800

480 600 600

2,380 2,600 2,600

Cost

Materials Labor Overhead

77,000.00 35,000.00 49,000.00

133,750.00 96,720.00 166,160.00

2,380 2,600 2,600

56.19748 37.20000 63.90769

77,000.00 35,000.00 49,000.00

5,619.75 7,440.00 12,781.54

101,155.46 66,960.00 115,033.84

26,974.79 22,320.00 38,344.61

314.81806857
422.84
ng the period 254.81
Ace Tool Company
Cost of Production Report - Assembly Department
For the production period November 20XX

Equivalent Units o

Quantity Schedule Physical Units Transferred-in

(a) Quantity to be accounted for
Beginning WIP inventory 1,000
Units started 3,000
Units to account for 4,000

(b) Quantity accounted for

Total units Transferred out to Finished Goods 2,800 2,800
Ending WIP inventory 1,200 1,200
Units accounted for 4,000 4,000

Cost

Cost Schedule Total Transferred-in

(c) Cost to be accounted for
Beginning WIP inventory 397,000.00 236,000.00
Current cost for the period 689,130.00 292,500.00
Cost to be accounted for 1,086,130.00 528,500.00
Divided by: EUP 4,000
Cost per EUP 132.125

(d) Cost accounted for

Transferred out to Finished Goods 835,524.42 369,950.00
Ending Inventory 250,605.58 158,550.00
Total cost accounted for 1,086,130.00

Unit Cost of Units Transferred-out to Finished Goods

Equivalent Units of Production

Materials Labor Overhead

2,800 2,800 2,800

480 600 600
3,280 3,400 3,400

Cost

Materials Labor Overhead

77,000.00 35,000.00 49,000.00

133,750.00 96,720.00 166,160.00
210,750.00 131,720.00 215,160.00
3,280 3,400 3,400
64.25304878 38.741176471 63.282352941

179,908.54 108,475.29 177,190.59

30,841.46 23,244.71 37,969.41

298.40157819
Ace Tool Company
Cost of Production Report - Assembly Department
For the production period November 20XX

Equivalent Units o

Quantity Schedule Physical Units Transferred-in

(a) Quantity to be accounted for
Beginning WIP inventory 1,000
Units started 3,000
Units to account for 4,000

(b) Quantity accounted for

Total units Transferred out to Finished Goods 2,800 2,800
Ending WIP inventory 1,200 1,200
Units accounted for 4,000 4,000

Cost

Cost Schedule Total Transferred-in

(c) Cost to be accounted for
Beginning WIP inventory 397,000.00 236,000.00
Current cost for the period 689,130.00 292,500.00
Cost to be accounted for 1,086,130.00 528,500.00
Divided by: EUP 4,000
Cost per EUP 132.12500

(d) Cost accounted for

Transferred out to Finished Goods 835,524.42 369,950.00
Ending Inventory 250,605.58 158,550.00
Total cost accounted for 1,086,130.01

Unit Cost of Units Transferred-out to Finished Goods

Equivalent Units of Production

Materials Labor Overhead

2,800 2,800 2,800

480 600 600
3,280 3,400 3,400

Cost

Materials Labor Overhead

77,000.00 35,000.00 49,000.00

133,750.00 96,720.00 166,160.00
210,750.00 131,720.00 215,160.00
3,280 3,400 3,400
64.25305 38.74118 63.28235

179,908.54 108,475.30 177,190.58

30,841.46 23,244.71 37,969.41

298.40158